High RS Diffusion Index

The chart below measures the percentage of high relative strength stocks that are trading above their 50-day moving average (universe of mid and large cap stocks.) As of 2/4/14.

diffusion 02.05.14 High RS Diffusion Index

The 10-day moving average of this indicator is 49% and the one-day reading is 33%. Dips in this indicator have often provided good opportunities to add money to relative strength strategies.

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